Travelers Companies (NYSE:TRV) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Friday. The firm presently has a $148.00 price target on the insurance provider’s stock. Zacks Investment Research‘s target price suggests a potential upside of 11.78% from the company’s previous close.
According to Zacks, “Shares of Travelers have outperformed the industry in the last three months. Travelers boasts a strong market position as one of the leading writers of auto and homeowners’ insurance and commercial U.S. property-casualty insurance with impressive inorganic growth story. It has been generating sufficient capital and prudently uses to boost shareholders’ value and pursue growth initiatives. Solid retention and positive renewal rate change are positives. But, exposure to catastrophe losses pose headwind for underwriting results. It estimates cat losses from California wildfires in $340–$440 million range for the fourth quarter. Still low interest rate environment restricts desired improvement in investment results and expects $15–$20 million lower after-tax net investment income on a quarterly basis. A Zacks Rank #2 and an Earnings ESP of -15.30% makes surprise prediction difficult for fourth quarter.”
Several other equities analysts also recently commented on the stock. ValuEngine downgraded shares of Travelers Companies from a “buy” rating to a “hold” rating in a report on Wednesday. Royal Bank of Canada reiterated a “buy” rating and issued a $148.00 price objective on shares of Travelers Companies in a report on Friday, December 8th. Keefe, Bruyette & Woods reiterated a “buy” rating and issued a $152.00 price objective on shares of Travelers Companies in a report on Wednesday, December 6th. Goldman Sachs Group began coverage on shares of Travelers Companies in a research note on Monday, December 4th. They issued a “sell” rating and a $124.00 price target on the stock. Finally, Wells Fargo & Co set a $125.00 price target on shares of Travelers Companies and gave the company a “hold” rating in a research note on Tuesday, November 14th. Four research analysts have rated the stock with a sell rating, nine have given a hold rating and eight have issued a buy rating to the company’s stock. Travelers Companies presently has a consensus rating of “Hold” and an average target price of $132.95.
Travelers Companies (NYSE:TRV) last released its quarterly earnings data on Thursday, October 19th. The insurance provider reported $0.91 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $2.10 by ($1.19). Travelers Companies had a net margin of 8.56% and a return on equity of 9.87%. The company had revenue of $6.66 billion during the quarter, compared to analyst estimates of $6.46 billion. During the same quarter in the prior year, the firm earned $2.40 earnings per share. Travelers Companies’s revenue for the quarter was up 4.2% on a year-over-year basis. analysts anticipate that Travelers Companies will post 6.74 earnings per share for the current year.
Travelers Companies announced that its board has authorized a stock buyback program on Monday, September 11th that permits the company to buyback shares. This buyback authorization permits the insurance provider to buy shares of its stock through open market purchases. Shares buyback programs are usually a sign that the company’s leadership believes its stock is undervalued.
In related news, EVP Michael Frederick Klein sold 20,077 shares of the company’s stock in a transaction dated Tuesday, November 21st. The shares were sold at an average price of $130.68, for a total transaction of $2,623,662.36. Following the completion of the sale, the executive vice president now owns 21,619 shares of the company’s stock, valued at $2,825,170.92. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Maria Olivo sold 33,225 shares of the company’s stock in a transaction dated Wednesday, November 29th. The stock was sold at an average price of $134.18, for a total transaction of $4,458,130.50. The disclosure for this sale can be found here. Insiders have sold 55,302 shares of company stock valued at $7,347,753 in the last ninety days. 0.82% of the stock is currently owned by company insiders.
Institutional investors and hedge funds have recently bought and sold shares of the stock. First Financial Bank N.A. Trust Division raised its holdings in Travelers Companies by 0.3% in the 2nd quarter. First Financial Bank N.A. Trust Division now owns 2,306 shares of the insurance provider’s stock valued at $275,000 after buying an additional 6 shares during the last quarter. YHB Investment Advisors Inc. raised its holdings in Travelers Companies by 0.4% in the 2nd quarter. YHB Investment Advisors Inc. now owns 1,975 shares of the insurance provider’s stock valued at $235,000 after buying an additional 8 shares during the last quarter. Balasa Dinverno & Foltz LLC raised its holdings in Travelers Companies by 0.3% in the 1st quarter. Balasa Dinverno & Foltz LLC now owns 3,448 shares of the insurance provider’s stock valued at $416,000 after buying an additional 9 shares during the last quarter. NBT Bank N A NY raised its holdings in Travelers Companies by 0.6% in the 2nd quarter. NBT Bank N A NY now owns 1,772 shares of the insurance provider’s stock valued at $211,000 after buying an additional 10 shares during the last quarter. Finally, Tradewinds Capital Management LLC raised its holdings in Travelers Companies by 1.1% in the 2nd quarter. Tradewinds Capital Management LLC now owns 905 shares of the insurance provider’s stock valued at $115,000 after buying an additional 10 shares during the last quarter. 78.49% of the stock is owned by institutional investors and hedge funds.
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Travelers Companies Company Profile
The Travelers Companies, Inc is a holding company. The Company’s segments include Business and International Insurance; Bond & Specialty Insurance, and Personal Insurance. Through its subsidiaries, it provides commercial and personal property and casualty insurance products and services. The Business and International Insurance segment offers property and casualty insurance and insurance related services to its clients, in the United States and in Canada, as well as in the United Kingdom, the Republic of Ireland, Brazil and throughout other parts of the world.
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